The role of Freeports and Investment Zones
Freeports, with their tax incentives and simplified customs procedures, create a fertile ground for businesses to thrive.
They reduce operational costs and enhance efficiency, making them highly appealing to foreign investors looking for a competitive edge. Locations near Freeports are increasingly seen as prime investment opportunities, driving economic growth and job creation.
A recent report highlighted a significant trend: proximity to Freeports is a key factor in drawing investment, underscoring the strategic importance of these zones.
"As we navigate the evolving landscape of foreign direct investment (FDI) in the UK, it’s clear that Freeports and Investment Zones are playing a pivotal role in making our nation an attractive destination for global investors."
Richard Baigent, International Trade Consultant at Irwin Mitchell
Government commitment
In her latest Budget, Chancellor Rachel Reeves reaffirmed the government’s commitment to expanding and supporting Freeports. Her announcements included additional funding and policy measures aimed at bolstering these zones, ensuring they remain at the forefront of our economic strategy. This commitment not only strengthens our existing Freeports but also paves the way for new Investment Zones, further enhancing the UK’s attractiveness to international investors.
In summary, the interest in Freeports has surged to levels not seen in recent years. Our close ties with many of the UK’s freeports position us uniquely to capitalize on these opportunities. For businesses, this means access to a dynamic environment ripe with potential for growth and innovation. The future of FDI in the UK looks promising, with Freeports and investment zones leading the charge.
Case Study
Inverness & Cromarty Firth Green Freeport gained formal tax site status on 8th April 2024. This represented an important milestone on a three-year journey that took the combined efforts of partners including government agencies, the local authority and businesses.
Inverness & Cromarty Firth Green Freeport gained formal tax site status on 8th April 2024. This represented an important milestone on a three-year journey that took the combined efforts of partners including government agencies, the local authority and businesses.
Securing Green Freeport status was a competitive process, and the cohesion and focus required to be successful in that process has continued to this day. Potential inward investors regularly reference the enthusiastic and coordinated response they receive when considering the Highlands as a place to invest.
We’re currently in the final stages agreeing the Full Business Case with the UK and Scottish Governments, but already we’ve secured investment commitments of around £850m. Our established ports and businesses are investing in growth, but the decision by Sumitomo Electric to build a £350m cable factory in the Green Freeport has put down a marker for the international business community that we’re a frontrunner in manufacturing and delivering the energy transition. We anticipate more manufacturing businesses will follow their lead. We’ve also had commitment of £400m to reinstate Ardersier Port - one of the former oil and gas fabrication yards which has lain dormant for many years – to create the Ardersier Energy Transition Facility. The facility is owned by Haventus Ltd, part of Quantum Capital Group, which is a US-based investor providing private capital to the energy transition and decarbonisation sectors.
Green Freeport status provides incentives to attract investment and job creation in the region. Those benefits along with our proximity to areas of the North Sea licensed for offshore wind development enables us to become one of Europe’s leading heavy engineering hubs. The predicted job creation figures will require significant workforce development and social infrastructure such as housing but using the same partnership approach that has worked so well for us this far, we’re making good progress on preparing the region for what lies ahead.
Inverness & Cromarty Firth Green Freeport is at the start of a long journey, but we’ve already made significant strides towards ensuring the Highlands is at the heart of the renewable energy revolution, creating opportunities now and building a legacy for future generations.
Calum MacPherson
Chief Executive of Inverness & Cromarty Firth Green Freeport